Mortgage broker - ask me anything

K_S

@rdchick Sorry to hear about the decline.

With debt collection agency payments on your bank statement, you want to avoid lenders that will ask for bank statements but as a commitment it also needs to be disclosed as debt. If it wasn't, then that could be an additional reason for the Nationwide decline.

There's no easy answer to your question unfortunately.

Generally speaking, you want to avoid lenders/banking-groups that you've had defaults with in the past as it usually only comes up at underwriting stage.

Having said that, I have had clients with > 6 year old LBG (Lloyds Banking Group) defaults where Halifax offered so there's no surety that they will link the current application to the old default, or that if they do, that they will care.

Plus, Halifax don't ask for bank statements usually and if your case is all PAYE income, it may go through without full underwriting so I can understand why your broker is leaning towards them.

Choirgrl

I am about to set out on being a FTB at the age of 49. This means that the end of my mortgage term and the start of my retirement are likely to fall close together. I plan to retire age 70. Am I right in thinking I’ll have access to a wider range of mortgages if I specify a 20 year term, rather than 21 year one (which would take me past my 70th birthday)?

I actually hope to be able to pay it off by my mid 60s through a mixture of regular additional payments and likely receipt of an inheritance during the mortgage term, but I’m aware this will be irrelevant to lenders.

rdchick

K_S said:

@rdchick Sorry to hear about the decline.

With debt collection agency payments on your bank statement, you want to avoid lenders that will ask for bank statements but as a commitment it also needs to be disclosed as debt. If it wasn't, then that could be an additional reason for the Nationwide decline.

There's no easy answer to your question unfortunately.

Generally speaking, you want to avoid lenders/banking-groups that you've had defaults with in the past as it usually only comes up at underwriting stage.

Having said that, I have had clients with > 6 year old LBG (Lloyds Banking Group) defaults where Halifax offered so there's no surety that they will link the current application to the old default, or that if they do, that they will care.

Plus, Halifax don't ask for bank statements usually and if your case is all PAYE income, it may go through without full underwriting so I can understand why your broker is leaning towards them.

Oooh that's good news then... However all my badness was from Halifax but also 10 years ago as they gave me some mad student overdrafts, then when I asked to swap to a graduate account to keep my overdraft, they gave me a loan and didn't close my overdraft and thus making double the debt at 21. I'm now almost 34 and gotta a more sensible head on my shoulders 😅

Any other lenders that don't ask for bank statements? I bank with Santander so I assume steer clear of them. Partner has had mortgages with NatWest but I know they're linked to BOS along with Halifax 🤔 minefield! 

Amye685

Hello - would any lenders credit check a spouse as part of a single application?

In a nutshell, my husband took out a mortgage before we were married, we have remortgaged a few years ago with Nationwide in his sole name again, no worries. We are now looking to remortgage again in his sole name, as I have a DMP and some defaults still on my credit file.  My husband has a flawless credit record, has always paid for the mortgage on his own with no affordability struggles.  Our broker hasn't asked why we are only applying in his name, which gives me hope, but how likely are lenders to look at the household as part of a single application? Is he likely to be accepted as a sole applicant provided he can easily afford the repayments?

K_S

Amye685 said:

Hello - would any lenders credit check a spouse as part of a single application?

In a nutshell, my husband took out a mortgage before we were married, we have remortgaged a few years ago with Nationwide in his sole name again, no worries. We are now looking to remortgage again in his sole name, as I have a DMP and some defaults still on my credit file.  My husband has a flawless credit record, has always paid for the mortgage on his own with no affordability struggles.  Our broker hasn't asked why we are only applying in his name, which gives me hope, but how likely are lenders to look at the household as part of a single application? Is he likely to be accepted as a sole applicant provided he can easily afford the repayments?

@amye685 For a remortgage application of a mortgage that's already in his sole name, you should be fine.

If you are financially associated on your credit reports, there may be a minor impact at the lender 'credit-scoring' stage, but I wouldn't expect that to cause any significant issues.

Narges

Hello-is it impossible to secure a mortgage with AR on credit file?

My partner and I have applied for a mortgage via Nationwide and our valuation is booked for tomorrow so not sure how long it will take after that to hear the decision. what worries me its my Partner's credit history, he had a two year Arrangement to Pay with a Water company, which has been stopped on March 2020 and the account has been closed on Apr 2021 and marked satisfied. at the time that he agreed to AP plan he wasn't clear about the negative impact it will have on his credit file. however, other than this black mark he doesn't have any other issue and has been paying a hire to purchase loan he had since 2019 on time till now, and my credit is clean without any problems. we are applying for 90%LTV, and we have a good amount of saving other than our deposits(£33k), close to £25K.  we are both in full time employment for over 3 years. I'm stressed as I have read really frustrating comments about not being able to secure a mortgage with AR mark on credit file! does anyone have any experience with these type of issue? 

K_S

Narges said:

Hello-is it impossible to secure a mortgage with AR on credit file?

My partner and I have applied for a mortgage via Nationwide and our valuation is booked for tomorrow so not sure how long it will take after that to hear the decision. what worries me its my Partner's credit history, he had a two year Arrangement to Pay with a Water company, which has been stopped on March 2020 and the account has been closed on Apr 2021 and marked satisfied. at the time that he agreed to AP plan he wasn't clear about the negative impact it will have on his credit file. however, other than this black mark he doesn't have any other issue and has been paying a hire to purchase loan he had since 2019 on time till now, and my credit is clean without any problems. we are applying for 90%LTV, and we have a good amount of saving other than our deposits(£33k), close to £25K.  we are both in full time employment for over 3 years. I'm stressed as I have read really frustrating comments about not being able to secure a mortgage with AR mark on credit file! does anyone have any experience with these type of issue? 

@narges As you're past the DIP stage, you *should* be fine.

Water companies usually report to only one of Experian or Equifax so it may also be the case that Nationwide never picked it up on their credit search. Does the arrangement to pay show on both reports Exp and Equifax?

mcyicsk2

Hi All,

Quick questions regarding Natwest. They have been very slow - application submitted on 12/05. valuation booked next week 

1. Are Natwest likely to give feedback on any concerns / issues before valuation
2. Do Natwest provide some kind of verbal indication that they are likely to approve subject to valuation before valuation takes place?
3. Will there be radio silence until post valuation now
   

Just wanted to get a general sense of how they operate

Many Thanks

K_S

mcyicsk2 said:

Hi All,

Quick questions regarding Natwest. They have been very slow - application submitted on 12/05. valuation booked next week 

1. Are Natwest likely to give feedback on any concerns / issues before valuation
2. Do Natwest provide some kind of verbal indication that they are likely to approve subject to valuation before valuation takes place?
3. Will there be radio silence until post valuation now
   

Just wanted to get a general sense of how they operate

Many Thanks

@mcyicsk2 The NatWest process (for broker apps, don't know if it's the same direct or not) 

- initial assessment (checking if the minimum documentation has been submitted, any glaring issues, etc.) at which point the valuation is instructed

- then goes to underwriting (currently it's a long time in the underwriting queue so the valuation generally comes back before the underwriting is complete).

- once any queries are resolved and underwriting is complete, the offer is issued 

Narges

K_S said:

Narges said:

Hello-is it impossible to secure a mortgage with AR on credit file?

My partner and I have applied for a mortgage via Nationwide and our valuation is booked for tomorrow so not sure how long it will take after that to hear the decision. what worries me its my Partner's credit history, he had a two year Arrangement to Pay with a Water company, which has been stopped on March 2020 and the account has been closed on Apr 2021 and marked satisfied. at the time that he agreed to AP plan he wasn't clear about the negative impact it will have on his credit file. however, other than this black mark he doesn't have any other issue and has been paying a hire to purchase loan he had since 2019 on time till now, and my credit is clean without any problems. we are applying for 90%LTV, and we have a good amount of saving other than our deposits(£33k), close to £25K.  we are both in full time employment for over 3 years. I'm stressed as I have read really frustrating comments about not being able to secure a mortgage with AR mark on credit file! does anyone have any experience with these type of issue? 

@narges As you're past the DIP stage, you *should* be fine.

Water companies usually report to only one of Experian or Equifax so it may also be the case that Nationwide never picked it up on their credit search. Does the arrangement to pay show on both reports Exp and Equifax?

Unfortunately, they have reported it to both Equifax and TransUnion and Nationwide have checked both these reports. we have tried to ask them taking it off, complaining that they have not explained it completely at the time but they refused to take it down!